Data Centers Gaining Ground in Central Ohio

Massive data centers are getting hundreds of millions of dollars in tax breaks in Ohio, reports David Trinko in a piece for Governing.

“The data centers are owned by a mix of consumer-facing brands like Amazon, Google and Meta, plus less familiar names like Quality Technology Services and CyrusOne. While from the outside they may look like large factories, they often employ 20 to 30 or so workers when operational. Some earn tax perks for promising as few as 10 new jobs.” According to Trinko, “The Ohio Department of Development, which until last year was responsible for approving the local property abatements, has refused to say how many local tax deals its officials allowed.”

While the centers don’t bring a significant amount of jobs or economic development, they do require massive energy outlays, “prompting concerns about grid reliability from PJM, operators of the 13-state grid that includes Ohio.” A Goldman Sachs analysis projects a 2.4 percent increase in power demand nationwide after a decade of steady demand, “with nearly 40 percent of that increase attributable to data centers.” By 2030, data centers will use roughly 8 percent of U.S. power resources.